The Multiple Regulator Model: A Case of Too Many Cooks?

Nur Azam Anuarul Perai

doi:10.1515/npf-2020-0026

Abstract

Abstract Regulation protects the third sector from mismanagement, provides data for policy development, and increases public trust and confidence in its organisations. Different agencies regulate Malaysian third sector organisations (TSO), based on their legal forms and varying activities or functions. Yet, can different regulations governing organisations with similar objectives effectively address issues affecting the sector as a whole? This study provides an overview of the Malaysian third sector regulatory landscape and examines the operational challenges caused by the multiple regulator environment. Third sector actors and regulators were interviewed to understand how they navigate legal and regulatory requirements. Findings show that regulation is hampered by discrepancies surrounding the interpretation and application of laws. This Malaysian study shows that regulatory inconsistencies affect the sector’s operational efficiency and diminish trust between the TSOs and regulators. Based on these findings, uniformity in regulation is crucial to build trust in the sector, as well as between actors and regulators.

Highlights

The growing prominence of nonprofit organisations that operate outside the boundaries of the public and private sectors has ignited the interest in methods and outcomes of their regulation (Breen, Dunn, and Sidel 2017; Cordery 2013; DeMattee 2019; Sidel 2003)
Can different regulations governing organisations with similar objectives effectively address issues affecting the sector as a whole? This study provides an overview of the Malaysian third sector regulatory landscape and examines the operational challenges caused by the multiple regulator environment
Around 75% of registered Third Sector organisations in Malaysia are registered as societies with the ROS (Perai 2019)

Summary

Introduction

The growing prominence of nonprofit organisations that operate outside the boundaries of the public and private sectors has ignited the interest in methods and outcomes of their regulation (Breen, Dunn, and Sidel 2017; Cordery 2013; DeMattee 2019; Sidel 2003). Imposing minimum reporting standards would enable third sector data to be publicly available, facilitating scrutiny by stakeholders (Cordery 2013).

Objectives

Methods

Results

Discussion

Conclusion